M/s. Veepee Plastics Pvt.Ltd, Pune V. Income-tax Officer, Ward - 13 (5), Pune

ITA 1406/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8130 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-01-2020
• Assessment Year: 2010-2011
• Appeal Filed On: 23-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHARAT DEORAJ SH E G AONKAR
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER . / ITA NO.1406/PUN/2019 / ASSESSMENT YEAR : 2010-11 M/S. VEEPEE PLASTICS PRIVATE LIMITED, 60/61/ PRAPTIKAR SADAN, ERANDWANE, KARVE ROAD, PUNE 411 004. MAHARASHTRA. PAN : AAACV6271B. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD 13(5), PUNE. . / RESPONDENT ASSESSEE BY : SHRI P.D. KUDVA, C.A. REVENUE BY : SHRI BHARAT DEORAJ SHEGAONKAR / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF THE O RDER OF COMMISSIONER OF INCOME TAX (APPEALS), PUNE 5, PUNE DATED 28.06.2019 FOR A.Y. 2013-14. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RE CORD ARE AS UNDER :- ASSESSEE IS A PRIVATE LIMITED COMPANY STATED TO BE CAR RYING OUT THE BUSINESS OF MANUFACTURERS / TRADERS OF PLASTICS. ASSESSE E FILED ITS RETURN OF INCOME FOR A.Y. 2013-14 ON 30.09.2013 DECLARING TOTAL INCOME OF RS.NIL. THE / DATE OF HEARING : 22.01.2020 / DATE OF PRONOUNCEMENT: 22.01.2020 2 CASE WAS SELECTED FOR SCRUTINY AND THEREAFTER, THE ASSE SSMENT WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER DATED 22.03.2016 AND THE TOTAL INCOME WAS DETERMINED AT RS.41,96,786/-. AGGRIEVED BY THE ORDER O F AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE ORDER DATED 28.06.2019 (IN APPEAL NO.PN/CIT(A)-5/ITO, WARD 13(5), PUNE/SET-ASIDE/1049 0/2018-19) DECIDED THE APPEAL. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASS ESSEE IS NOW IN APPEAL AND HAS RAISED THE FOLLOWING GROUNDS. 1. THE HON. CIT(A) ERRED IN CONCLUDING THAT THE AP PELLANT WAS NOT KEEN IN PROSECUTING THE APPEAL BEFORE HER. THE APPELLANT SU BMITS THAT HIS REPRESENTATIVE WAS PRESENT BEFORE THE CIT(A) ON THE DATES OF HEARI NG AND HAD ALSO MADE ORAL SUBMISSIONS AND HAD MERELY SOUGHT TIME TO FILE WRIT TEN SUBMISSIONS WITH PRIMARY DOCUMENTS WHICH HAD NOT YET BEEN RECEIVED F ROM THE ASSESSEE. THE APPELLANT PLEADS THAT THE CIT(A) ERRED IN DECIDING THE APPEAL ON THE BASIS OF MATERIAL AVAILABLE ON RECORD WITHOUT HEARING THE AP PELLANT. IT IS PRAYED THAT THE APPEAL FILED BEFORE THE CIT(A) BE RESTORED AND BE D IRECTED TO BE HEARD BY THE CIT(A) IN ACCORDANCE WITH LAW. 2. THE HON. CIT(A) ERRED IN CONFIRMING THE ORDER OF THE AO DISALLOWING CLAIM FOR INDEXED COST OF IMPROVEMENT RS 40,98,146 INCURRED T OWARDS ELECTRICAL INSTALLATIONS AND MSEB DEPOSITS ON GROUNDS THAT THE CLAIM WAS NOT SUBSTANTIATED THAT EVIDENCE IN THE FORM OF BILLS. T HE APPELLANT PLEADS THAT ITS CLAIM WAS SUPPORTED BY SUFFICIENT DOCUMENTARY EVIDE NCE AND THAT THE DISALLOWANCE MADE BY THE AO IS NOT JUSTIFIED. 3. BOTH THE GROUNDS BEING INTER-CONNECTED ARE CONSIDERED TOGE THER. 4. BEFORE ME, LD.A.R. AT THE OUTSET SUBMITTED THAT LD.CIT(A) HAS PASSED AN EX-PARTE ORDER AND NOT ON MERITS. LD.A.R. HAS FILED AN AFFIDAVIT WHEREIN INTER-ALIA HE SUBMITTED THAT THE LAST DATE OF HEARING WAS FIXED BY LD.CIT(A) ON 28.06.2019 FOR WHICH THE INTIMATION WAS SENT BY E-MAIL TO TH E ASSESSEE. SINCE THE COMPANY IS NOT FUNCTIONED AND DOES NOT HAVE T HE STAFF, THE DATE OF HEARING WAS NOT INFORMED TO THE LD.A.R. AND THEREFORE LD.A .R. COULD NOT APPEAR BEFORE LD.CIT(A). HE FURTHER SUBMITTED THAT IF GIVEN A CHANCE, ASSESSEE UNDERTAKES TO APPEAR BEFORE LOWER AUTHORITIES AND FURNISH ALL THE REQUIRED DETAILS TO SUBSTANTIATE ITS CASE. HE THEREFORE SUBMITTED THAT ASSESSEE BE GRANTED ONE MORE OPPORTUNITY TO EXPLAIN HIS STAND. LD.D .R. ON THE OTHER 3 HAND SUPPORTED THE ORDER OF AO AND LD.CIT(A) AND OBJECT ED TO LD.A.R.S PRAYER FOR 2 ND INNINGS. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MA TERIAL ON RECORD. THE ASSESSEE IS AGGRIEVED BY THE ADDITION OF RS.41,96,786/- MADE B Y AO AND UPHELD BY LD.CIT(A). THE PERUSAL OF ORDER OF LD.CIT(A) REVE ALS THAT LD.CIT(A) HAS PASSED AN EX-PARTE ORDER ONLY ON THE BASIS OF MA TERIAL AVAILABLE ON RECORD. I N VIEW OF THE WELL SETTLED PRINCIPLE OF NATURAL JUSTICE THAT S UFFICIENT OPPORTUNITY OF HEARING SHOULD BE AFFORDED TO THE PARTIES AND NO PARTY SHOULD BE CONDEMNED UNHEARD, I AM OF THE VIEW THAT ONE MORE OPPORTUNITY BE GRANTED TO THE ASSESSEE COMPANY TO PRESENT ITS CASE BEFORE THE AUTHORITIES. I THEREFORE RESTORE THE MATTER BACK TO THE FILE OF LD.CIT(A ) TO DECIDE THE ISSUE ON MERITS IN ACCORDANCE WITH LAW. NEEDLESS TO STATE THAT LD .CIT(A) SHALL GRANT ADEQUATE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. ASS ESSEE IS ALSO DIRECTED TO PROMPTLY FURNISH ALL THE DETAILS CALLED FOR BY THE AUTHOR ITIES. IN VIEW OF MY DECISION TO RESTORE THE ISSUE TO LD.CIT(A), I AM NOT ADJUD ICATING ON MERITS THE GROUNDS OF THE APPEAL RAISED BY THE ASSESSEE. THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 22 ND DAY OF JANUARY, 2020. SD /- ( ANIL CHATURVEDI ) ' / ACCOUNTANT MEMBER PUNE; DATED : 22 ND JANUARY, 2020. YAMINI 4 #$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A), PUNE 5, PUNE. PR. CIT, PUNE 4, PUNE. '#$ %%&',) &', *+ / DR, ITAT, SMC PUNE; $-.// GUARD FILE. / BY ORDER // TRUE COPY // // TRUE COPY // 012%3&4 / SR. PRIVATE SECRETARY ) &', / ITAT, PUNE.